Technical Report Estimated Mineral Resources Altar Project San Juan
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TECHNICAL REPORT ESTIMATED MINERAL RESOURCES ALTAR PROJECT SAN JUAN PROVINCE ARGENTINA Prepared for Aldebaran Resources, Inc. Prepared by: John M. Marek, RM-SME, Independent Mining Consultants, Inc. Stanford T. Foy, RM-SME, Aldebaran Resources, Inc Kevin B. Heather. FAUSIMM, Aldebaran Resources, Inc. Effective Date: March 22, 2021 TABLE OF CONTENTS 1.0 SUMMARY 2.0 INTRODUCTION 3.0 RELIANCE ON OTHER EXPERTS 4.0 PROPERTY DESCRIPTION AND LOCATION 4.1 Location . 4-1 4.2 Overview of Argentina . 4-3 4.2.1 Metal Mining in Argentina . 4-3 4.2.2 Mining Industry and Legislation . 4-3 4.2.3 Mineral Property Title . 4-5 4.2.4 Royalties . 4-6 4.2.5 Surface and Private Property Rights . 4-8 4.2.6 Environmental Regulations . 4-8 4.3 Property Description – Argentina . 4-10 4.3.1 General . 4-10 4.3.2 Tenure History . 4-14 4.3.3 Surface Rights . 4-19 4.4 Property Description – Chile . 4-22 4.5 Permits – Argentina . 4-24 4.6 Mining Integration and Complementary Treaty . 4-25 4.6.1 Treaty Aspects . 4-25 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY 5.1 Accessibility . 5-1 5.2 Climate . 5-1 5.3 Local Resources . 5-2 5.4 Infrastructure . 5-2 5.4.1 Regional Infrastructure . 5-2 5.4.2 Local Infrastructure . 5-3 5.5 Physiography . 5-3 6.0 HISTORY 7.0 GEOLOGIC SETTING AND MINERALIZATION 7.1 Regional Geology. 7-1 7.2 Property Geology . 7-2 7.2.1 Early Miocene Pachon Formation . 7-2 7.2.1.1 Pachon Formation Andesite Unit (AND) . 7-3 7.2.1.2 Pachon Formation Rhyolite Unit (RHY) . 7-3 7.2.1.3 Dacite Tuffs (DACit) and Lava Flows (DACf) 7-4 7.2.1.4 Quartz-rich Rhyolite Dome (SilD) . 7-4 7.2.2 Middle-Late Miocene Subvolcanic Porphyry Suite . 7-4 7.2.2.1 Alter Central – Altar East Quartz-Diorite Porphyries (DIP5, DIPAE, DIOPAC, DIP6, DIOPAE 2 and IBAE) 7-5 7.2.2.2 Altar North Porphyries (NP4, NP5, NP6/LDP) 7-5 7.2.2.3 QDM Dacite Porphyry (DAC) . 7-6 7.2.2.4 Radio Porphyries (RAD1, RAD2, RADed) . 7-6 7.2.2.5 Breccias (RMB, HBt, HBbm, HBhs) . 7-7 7.2.3 Colluvium and Alluvium (OVB) . 7-7 7.2.4 Lithology Codes . 7-7 7.3 Property Geology - Structures... 7-11 7.4 Property Geology -“3D” Structural & Lithological Geology Model 7-13 7.5 Property Geology - Alteration, Mineralization, Veins and Silica Ledges . 7-14 7.5.1 General . 7-14 7.5.2 Alteration, Mineralization and Veins . 7-14 7.5.2.1 Hypogene Assemblages . 7-16 7.5.2.1.1 PBK “Potassic Biotite – K feldspar” 7-16 7.5.2.1.2 GSC “Green Sericite – Chlorite” 7-16 7.5.2.1.3 ANL “Lavender Anhydrite” . 7-16 7.5.2.1.4 WSP “White Sericite Pyrite” . 7-17 7.5.2.1.5 TQS “Tourmaline Quartz Sericite” 7-17 7.5.2.1.6 QPC “Quartz Pyrite Clay” . 7-17 7.5.2.1.7 SHS “High Sulfidation Epithermal” 7-17 7.5.2.1.8 SBM “Base Metals Epithermal” . 7-17 7.5.2.1.9 PR “Propylitic” . 7-17 7.5.2.1.10 GYA “Gypsum” . 7-17 7.5.2.2 Supergene Assemblages . 7-18 7.5.2.2.1 SCL / SFX / SCF: . 7-18 7.5.3 Silica Ledges . 7-18 7.5.4 QDM Gold . 7-18 7.6 Mineralization Thickness . 7-19 7.6.1 Porphyry Copper-Gold . 7-19 7.6.2 Epithermal Gold-Silver + Copper . 7-20 7.7 “3D” Modeling of Arsenic-bearing Structural Zones . 7-20 8.0 DEPOSIT TYPES 8.1 High- and Intermediate- Sulphidation Epithermal Deposits . 8-1 8.2 Porphyry Copper Deposits . 8-2 9.0 EXPLORATION 10.0 DRILLING 10.1 Introduction . 10-1 10.2 2011 Drill Program . 10-4 10.3 2012 Drill Program . 10-5 10.4 2013 Drilling Program. 10-5 10.5 2014 and 2015 Field Programs. 10-5 10.6 2016 and 2017 Drilling Programs . 10-6 10.7 2018 Drilling Program. 10-6 10.8 2019 Drilling Program. 10-6 10.9 Collar and Down Hole Surveys . 10-6 10.10 Drill Hole Monuments . 10-7 11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY 11.1 Drill Core Preparation . 11-1 11.2 Full Core Photos by Aldebaran Personnel .. 11-2 11.3 Core Splitting and Sampling by Aldebaran Personnel. 11-2 11.4 Cut-Core Photos by Aldebaran Personnel .. 11-3 11.5 Core Samples Transport to Analytical Laboratory in Mendoza 11-3 11.6 Cut-Core Boxes Transport to San Juan Main Storage Facility 11-4 11.7 Sample Preparation . 11-4 11.8 Analytical Procedures . 11-6 11.9 QAQC Samples . 11-8 12.0 DATA VERIFICATION 12.1 Assay Database Checks . 12-2 12.2 Standards . 12-3 12.3 Blanks . 12-6 12.4 Field Duplicates . 12-9 12.5 Secondary Laboratory Check Assays . 12-14 12.6 Opinion . 12-14 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 13.1 Altar Comminution Summary. 13-4 13.2 Altar Flotation Summary . 13-4 13.3 Pilot Plant Testing . 13-7 13.4 Concentrate Treatment Testing . 13-7 13.5 Altar Copper Leach Summary . 13-8 13.6 Gold Cyanide Leach Tests . 13-9 13.7 QDM Gold Flotation and Gold Leach . 13-10 14.0 MINERAL RESOURCE ESTIMATES 14.1 Model Location . 14-1 14.2 Drill Hole Data . 14-3 14.3 Model Geology . 14-4 14.4 Drill Hole Composites . 14-13 14.5 Domains . 14-14 14.6 Variography . 14-18 14.7 Block Grade Estimation . 14-22 14.8 Density . 14-24 14.9 Classification . 14-25 14.10 Model Verification . 14-25 14.11 Mineral Resources . 14-30 15.0 MINERAL RESERVE ESTIMATES 16.0 MINING METHODS 17.0 RECOVERY METHODS 18.0 PROJECT INFRASTRUCTURE 19.0 MARKET STUDIES AND CONTRACTS 20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 20.1 Environmental Permitting – Argentina . 20-1 20.2 Baseline Studies – Argentina . 20-2 20.3 Environment – Chile . 20-17 21.0 CAPITAL AND OPERATING COSTS 22.0 ECONOMIC ANALYSIS 23.0 ADJACENT PROPERTIES 24.0 OTHER RELAVENT DATA AND INFORMATION 25.0 INTERPRETATION AND CONCLUSIONS 26.0 RECOMMENDATIONS 27.0 REFERENCES 28.0 DATE, SIGNATURE PAGE AND CERTIFICATE OF QUALIFIED PERSONS LIST OF TABLES 1-1 Altar Project Mineral Resources . 1-5 4-1 Tenure Details . 4-11 7-1 Lithology Units and Codes . 7-8 10-1 Altar Drill Program Summary . 10-1 13-1 Summary of Metallurgical Test Programs . 13-3 14-1 Altar Model Size and Location, March 2021 . 14-2 14-2 Drilling Summary for the Altar Project . 14-3 14-3 Basic Assay Statistics by Project Area . 14-3 14-4 Assay Cap Levels by Lithology . 14-4 14-5 Interpreted Lithologic Units in the Altar Project . 14-5 14-6 Altar Central and East Domains and Search Parameters . 14-16 14-7 QDM Domains and Search Parameters . 14-17 14-8 Altar North Domains and Search Parameters 14-17 14-9 Default Densities If Not Estimated by Inverse Distance . 14-24 14-10 Bias Check Comparison of Selected Inv Dist 3 Compared to Nearest Neighbor . 14-26 14-11 Comparison of Block Grades Versus Contained Composite Grades . 14-27 14-12 Altar Mineral Resource Input Parameters . 14-31 14-13 QDM Mineral Resource Input Parameters . 14-33 14-14 Altar and QDM Mineral Resources . 14-36 14-15 Altar Mineral Resources on Rio Cenicero Concession . 14-37 14-16 Cut-off Grade Sensitivity within the Altar Central and East Mineral Resource Pit . 14-39 20-1 Average Flows . 20-9 20-2 Prospect Hole Characteristics . 20-10 20-3 2012 Archaeological Survey . 20-15 20-4 2017 Archaeological Survey . 20-15 LIST OF FIGURES 1-1 Altar District Drill Hole Location Map . 1-4 4-1 Project Location Map . 4-2 4-2 Surface Rights Map . 4-12 4-3 Access Road Easement 98-B-96 . 4-21 4-4 Access Road Alignment Chile . 4-23 7-1 Altar Structural Domains . 7-12 7-2 Structural Domains and Lithology Plan Map . 7-13 7-3 Oblique View to the Northeast of a Section Through the Geologic Model 7-14 10-1 Drill Hole Location, Resource Model Area . 10-3 10-2 Water Monitoring Holes, Drilled in 2011 . 10-4 12-1 Results for Inserted Standards Copper and Gold Data Through 2019, QDM Drilling Included. 12-4 12-2 Results for Inserted Standards Silver and Arsenic Data Through 2019, QDM Drilling Included . 12-5 12-3 Blank Results Copper and Gold . 12-7 12-4 Blank Results Silver and Arsenic . 12-8 12-5 Split Core Field Duplicates for Copper . 12-10 12-6 Split Core Field Duplicates for Gold . 12-11 12-7 2013 Split Core Field Duplicates for Silver . 12-12 12-8 Split Core Field Duplicates for Arsenic . 12-13 12-9 Pre 2016 Pulp Check Assays for Copper . 12-15 12-10 Pre 2016 Pulp Check Assays for Gold . 12-16 12-11 Pre 2016 Pulp Check Assays for Silver . 12-17 12-12 Pre 2016 Pulp Check Assays for Arsenic . 12-18 12-13 Copper and Gold Pulp Check Assays 2016 . 12-19 12-14 Copper and Gold Pulp Check Assays 2017 . 12-20 12-15 Copper and Gold Pulp Check Assays 2018 . 12-21 13-1 Bond Work Index Sample Distribution .